Joint rulers of the daily fantasy recreations (DFS) market DraftKings and FanDuel have actually walked away from a proposed merger of equals, less than a month after the Federal Trade Commission (FTC) moved to block the offer on grounds of antitrust ‘fair competition’ issues.
The offer’s off: DraftKing’s Jason Robins (left) and FanDuel’s Nigel Eccles announced on Thursday that their companies would be going it alone, calling down a potential FTC fight in the grounds of antitrust violations. (Image: Reuters)
The two companies announced the termination of the tie-up on Thursday, simply days after they’d each filed appropriate briefs to a district that is federal, vigorously defending the merger.
But with both companies already fighting legal actions on several fronts, it looked like another costly and possibly condemned appropriate battle lay ahead. A source told ESPN that accepting the FTC would likely cost some $12 to $15 million.
Ironically, consolidation might have dramatically slice the amount of appropriate and costs that are lobbying two businesses spend fighting for legal DFS in states across the united states. It might additionally eliminate the expenses associated with trying to out-market one another.
The failure of the deal leaves both in precarious positions that are financial as neither has ever been profitable. Documents related to the merger leaked last month revealed that Читать далее «DraftKings, FanDuel Jettison Merger Plans, Back Away From FTC Challenge»